TransAct Technologies (TACT) investor relations material

Executive summary

• Q2 2026 net sales were $13.9M, up 1% year-over-year, impacted by a $1M reduction for estimated customer refunds due to a Supreme Court tariff ruling; excluding this, net sales would have been $14.9M, up 8% year-over-year.

• Gross margin improved to 50.2% in Q2 2026, up from 48.2% in Q2 2025, driven by higher-margin FST recurring revenue and increased casino and gaming sales.

• Adjusted EBITDA for Q2 2026 was $514K, affected by $400K in tariff adjustments; first half 2026 adjusted EBITDA reached $1.9M.

• Operating loss narrowed to $54K in Q2 2026 from $258K in Q2 2025; net loss for Q2 was $50K, with net income for the first half at $716K.

• Launched next-generation BOHA! SaaS platform on Microsoft Azure, enhancing scalability and enabling AI integration.

Financial highlights

• Q2 2026 net sales: $13.9M (up 1% YoY); excluding tariff impact, $14.9M (up 8% YoY); six months ended June 30, 2026: $28.4M (up 6%).

• Gross profit for Q2 2026: $7.0M (50.2% margin); six months: $14.3M (50.3% margin).

• Recurring FST sales: $3.4M, up 13% YoY; software revenue up 47% YoY.

• Net loss: $50K (break-even EPS), improved from $143K loss prior year; basic and diluted EPS for six months: $0.07.

• Cash and equivalents: $19.4M at June 30, 2026.

Outlook and guidance

• Reaffirmed full-year 2026 net sales outlook of $55M–$57M.

• Increased full-year adjusted EBITDA guidance to $1.5M–$2M.

• Gross margin expected in mid to high 40% range for full year.

• FST revenue expected to be higher in 2026 than 2025, driven by growth in installed terminals and recurring revenue.

• Casino and gaming sales anticipated to increase in 2026 as customer inventory levels normalize and demand strengthens.